Drivers beware: you may not be covered by insurance when using car for work purposes
She learned about a pitfall in her comprehensive auto plan with
Because her son was working during the accident, the policy didn't cover the damages.
The crash happened while he was driving her 2008 Nissan Versa at about
He'd stopped for a red light at the intersection of
The driver's side of her vehicle was considerably damaged, Caturla said, and her son had a long cut on his arm that required stitches.
Originally, Caturla assumed her auto plan would cover the damages. But that was before Progressive discovered her son was delivering pizzas when the accident occurred.
"They said since my son was delivering pizzas, it's an exclusion," said Caturla, who is upset she never knew about the rules. "Thousands of people living from paycheck to paycheck could have the same thing happen to them. It's a dirty little secret because no one ever says you need to have commercial insurance" to drive your vehicle for work purposes.
The 66-year-old widow, who works at the
Such exclusions are a normal part of auto policies, said
Dennis said commercial insurance is typically needed for those who want their vehicles insured while using them for work. Exclusions in normal plans leave those who deliver pizza, food and products, such as newspapers and magazines, on the hook for covering accident costs. Oftentimes, people don't read the fine print in contracts.
"I agree 100 percent that most people don't realize this is the policy," he said. "And I think a lot of employers aren't steering people to the proper insurance they need for business use."
Commercial insurance also protects drivers for ride-sharing companies, such as
"There are (add-on) polices for
Dennis said those who deliver food and other products, however, need commercial insurance. The price for those plans can vary widely, depending on one's driving record. For an adult with a clean driving record, for example, it could be as much as a normal plan.
Dennis thinks restaurants, in particular, should do a better job informing employees about commercial insurance.
"Personally, I think a lot of places don't tell employees. Or they school them to say they are not working if there's an accident," he said. "That's where my frustration is."
Sometimes, he said, insurance carriers will make exceptions and provide accident coverage for those who mistakenly don't have commercial insurance.
But that wasn't the case for Caturla, who is trying to climb out of a financial rut.
She owes a local towing company
"It's a nightmare that doesn't stop," she said.
A spokesman from Progressive declined to comment Thursday because he said more information would be needed about the case to do so. A spokesperson from the
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